Archive for December, 2008

Treasurer approves WMC takeover – Business – www.theage.com.au

December 26, 2008

Treasurer approves WMC takeover

The Age, April 4, 2005  Anglo-Australian resources giant BHP Billiton has been given the green light by Treasurer Peter Costello for its $9.2 billion takeover of Australian miner WMC Resources.

But BHP failed to get any concessions on Australia’s restrictions on uranium exports, limiting its exploitation of the world’s largest known uranium deposit at WMC’s Olympic Dam site in South Australia.

WMC had been the focus of a hostile takeover by Swiss-based Xstrata that had gained attention from the government backbench before BHP put in its bid.

Mr Costello, who had the ability to block the takeover or set impossible restrictions, only set two conditions on BHP and its proposal, both relating to uranium.

“BHP will abide by all Australian federal and state laws and regulations relating to the mining and export of uranium,” Mr Costello said today.

“BHP will undertake prior consultations with the Department of Industry, Tourism and Resources on the terms of any and all marketing arrangements it enters into with third parties in respect to uranium.”These would be subject to all regulatory requirements imposed as part of the government’s regulations and disclosure rules relating to uranium sales out of Australia, he said…………………

Australian Democrats leader Lyn Allison warned that in any takeover of WMC, the rights of native title claimants should not be steamrolled.

Senator Allison said there were currently native title claims by the Kokatha and Bangarla people over the Roxby Downs area, including the Olympic Dam mine.

“The government was quick to approve a foreign takeover, yet the fact that the Roxby Downs land involved is still subject to a native title claim, is not even being considered,” she said in a statement.

Senator Allison said the rights of indigenous people were also being undermined by WMC which had recently applied to bring native title tribal hearings forward to April 15.

“Aboriginal claimants are being severely disadvantaged by the ‘commercial imperatives’ of these mining giants,” Senator Allison said.

“There is no way anyone would have enough time to properly prepare for trial or be in a position to negotiate with huge corporations on such short notice.

“The takeover bid is centred on financial implications while the indigenous claimants have been overlooked as have the environmental implications of nuclear waste storage.”

Treasurer approves WMC takeover – Business – www.theage.com.au

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The Roxby Downs uranium mine

December 20, 2008

The Roxby uranium mine
ELECTRICITY, RADIOACTIVE WASTES  and WATER Some background to the operations at Roxby

from The Radioactive Show 13 March 1999

  • Eric Miller interviews Dr Dennis Matthews from the Nuclear Issues Centre about the Roxby uranium mines power arrangements.
  • Eric Miller interviews David Noonan from ACF Adelaide about the Laffery report on the Beverley uranium pilot plant.

ELECTRIC POWER
The South Australian power utility EDSA, has not been privatised yet, but the Roxby uranium mine in northern South Australia can buy its electric power from other states. And that is what is being done.

Eric Miller asked Dennis Matthews from the Nuclear Issues Centre in South Australia,
‘Has the Roxby mine made new arrangements for its power supply?’
Dennis Matthews: Yes it has. Since the expansion started up around January of this year, they’ve needed an extra 80 megawatts making a total of 180 megawatts power demand. That’s more or less 24 hours a day, 52 weeks a year. This has put them in a very good bargaining position so they can actually go through the national electricity market, bargain and get a very good deal. The best deal you can get these days is from Victoria. So the cheapest electricity, sometimes a tenth of the price of what we have in South Australia, but always much less anyway, the best deal you can get is from Victoria through the inter-connector with Victoria.About a third of our electricity can come, and often does come, through that inter-connector and Roxby now has a big share of that cheap electricity from Victoria. Not the whole lot by any means, only about a fifth, so other people can get some for the time being. At a very much reduced rate.
Now what that means is that the people who had been getting their electricity from Victoria at this cheap rate will now no longer be able to get it and from now on a fifth of the electricity has been switched over to Roxby. And those people from, typically, South Australian businesses, small businesses and household consumers, will now have to pay a much higher rate.

Eric Miller: The South Australian people invested in all this generation now it is not needed.
Dennis Matthews: Not only did we invest in the generators in South Australia but we also invested in Roxby. And Roxby is showing how grateful they are by taking their business elsewhere.Eric Miller:

Does this mean that the greenhouse effect from Roxby will go up with the dirty brown coal that Victoria has?
Dennis Matthews: Yes. Victoria makes all of its electricity from brown coal that is not only very dirty, but it is also very energy inefficient. This means that it makes much more greenhouse gases than other pollutants per unit of electricity. In South Australia we use coal that is not very good grade either but we also use gas that is considered to be a lower emitter of greenhouse gases per unit of electricity. Roxby is already responsible for the biggest single amount of greenhouse gas emissions in South Australia, because of the power demands.
Eric Miller: Before this happened, Western Mining said they were going to generate their own electricity and were trying to bargain the South Australian company down.
Dennis Matthews: Yes, I think that was a bit of a bluff, part of the game. It was contradictory in a sense. They said, ‘We want cheap electricity. If the Government is not going to privatise EDSA and Optima, we are going to build our own power station.’ But the two are self-contradictory because if they were to build their own power station the electricity would have been a lot more expensive than the electricity in Victoria and even the electricity in South Australia simply because the other power stations in South Australia are already paid off. What they would be paying for is the cost generating and transmitting the electricity whereas Roxby would have had to pay for the cost of building and generating the electricity.

Eric Miller: It is really another downturn for having a uranium mine in your state!

RADIOACTIVE WASTES

Dennis Matthews: Well it is another negative affect. There are a heap of negative affects. They already use huge amounts of water from the artesian basin with the various affects on that area, on the Mound Springs, on the ecology of the area. Now they are using huge amounts of electricity with the negative affects that we have just discussed.

They are also generating the largest amount of radioactive waste, probably in the world. And they are going to eventually have something like 800 hectares, 35 metres high, of tailings. It will be the biggest pile of radioactive waste anywhere in the world, I think, by the time it is finished.

Eric Miller: Which South Australians will have to look after for eternity.

Dennis Matthews: Yes, forever, essentially. We are talking thousands and tens of thousands of years and for all intents and purposes, that’s eternity.

Linda Marks: And that was Dennis Matthews from the Nuclear Issues Centre in South Australia and he was telling us how Roxby uranium mine is now buying power from Victoria.

Still in South Australia, we go to the Beverley uranium mine that is in the Lake Frome area in northern South Australia. The Beverley mine is still going through the EIS process although it has had a pilot plant operating there for over a year. Beverley is wholly operated by an American company, the nuclear giant, General Atomics. With overwhelming evidence that the aquifer could be contaminated by the mine, Senator Hill and the South Australian Government brought in an independent expert in the in situ leaching method of mining the uranium last year. Hydrologist Ms. April Lafferty of the American Science Inc visited the site late last year.

WATER

David Noonan, Campaign Officer for the ACF in Adelaide has been trying to get a copy of the Lafferty report through the Freedom of Information Act. Eric asked David if he had been able to get a copy of that report yet and if so, what was in it?

David Noonan: The Commonwealth had to release the Lafferty report. Someone leaked it before they were legally obliged to provide it to ACF under the Freedom of Information Act. The Lafferty report in effect confirms that it was only the opinion of General Atomics that the local aquifer that the mining will take place in is actually said to be confined. Lafferty confirmed that the available studies and the available information was insufficient to support the assumptions being made by the company. Therefore there was a risk of contamination, especially of near surface aquifers, local aquifers, from waste and from mining liquids used in this sulphuric acid in situ leach uranium mining technique. Should there be a hydraulic connection between those aquifers, and the evidence wasn’t really there to support the company assumption that there was no such connection.

Eric Miller: So it is possible that this mining operation could contaminate the other aquifers in the surrounding area.

David Noonan: Should there be a connection between them that could certainly be the case that they are at risk. The company and the government have gone ahead with the trial mine for some 12 months without even having the base line environmental information. They had given those approvals, including the approvals from Senator Hill, to allow the trial mine to go ahead without an EIS. This was on a level of information that would not have been unacceptable, or would have been contrary to the standards for a similar mining operation in the US.

Eric Miller: So this would not have complied with US mining regulations.

David Noonan: Certainly not on the level of information that has been provided by the company as proponents of the project to government. In the US they would have been required a great deal further information, a lot more thorough studies. In the case of General Atomics they were often relying on single monitoring tests whereas in the US you would have to have a series of tests. And much of the information cited by General Atomics here for Beverley had come from previous mining companies’ operations. The supposed results of those tests could not be substantiated because there was insufficient information available, left available or ever available as to what standard they had carried out those tests.

Eric Miller: Where does the process go now with the EIS

David Noonan: Well, Senator Hill has falsely claimed that there are no environmental reasons why the project should not go ahead. However, he’s had to order further tests of the ground water system as recommended by Laffery, the consultant. And he has to take the very interesting unique step of not allowing the company to discharge liquid wastes to ground water until those tests are in and until government has assessed those tests. Those tests of the ground water system.

In effect he has had to take back an approval he gave to General Atomics at the start of last year to allow them to discharge all their liquid wastes, including radioactive wastes, to ground water at that site. So that’s a win for the conservation movement. It’s a small one compared to the damage that the project will bring.

One of the fundamental points from Lafferty was that the failure of the government to order rehabilitation of ground water was one of the substantial points that placed other aquifers at risk. If they failed to rehabilitate ground water then there is that continuing risk in the long term for these toxic, now highly mobile materials, radioactive and heavy metals and sulphuric acid etcetera, to move from the Beverley aquifer into adjoining near surface aquifers. So it is the failure of government to have credible standards in the first place. Their failure to require adequate environment base line information, their failure to put the trial mine through an EIS process that would have exposed these sorts of things. That’s where the problem really is laying. Now, once the studies are in, the more thorough studies of ground water, the government will assess those studies again. They will have Lafferty’s advice on those studies, and at that point they will decide whether the company has to submit a new plan of management of liquid wastes for the mining proposal. And again they would get advice from Lafferty as to what conditions they might place on such a plan.

Unfortunately Senator Hill doesn’t recognise the main problem. The cause of all these problems is that he is allowing uranium mining on that site and he is allowing this first use in the Western world of commercial sulphuric acid in situ leach uranium mining. So, we’ve yet to get Senator Hill to understand those point. But he hadSbeen forced in effect, because of the errors they have made up to now, to take back his initial approval to liquid discharge at Beverley.

Eric Miller: In South Australia you have another uranium mine, the Honeymoon mine, using the same process.

David Noonan: It’s very much the same situation where they were allowed to discharge liquid wastes to ground water throughout last year. Given that Senator Hill has had to recognise that that was never acceptable in the case of Beverley. Now after the event, he should be taking back the approval to Southern Cross at Honeymoon to discharge their radioactive wastes, including all their liquid wastes the mining operations into ground water there. He hasn’t yet taken that step and we intend to force him to do so.

Linda Marks: And that was David Noonan from the Australian Conservation Foundation office in Adelaide. The Honeymoon mine also uses in situ leaching as a way of extracting the uranium. This is where sulphuric acid is pumped through a bore into an ore body, and then sucked out. We understand that the EIS for Honeymoon has been written but they are waiting to see what happens at Beverley before presenting it.

Radio-Active Show Transcript – March 13, 1999

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Marathon rescue mission for OZ fails

December 19, 2008

Marathon rescue mission for OZ fails

the Age Barry FitzgeraldDecember 19, 2008OZ MINERALS’ suspension from trade appears set to continue well into the new year after marathon refinancing negotiations with its bankers failed to produce a quick fix………
……….At last count, OZ’s net debt had increased to $803 million, with $1.08 billion in debt and $279 million in cash……….
……The OZ update came as mining industry circles were full of gossip involving OZ and BHP Billiton. The pair are neighbours in South Australia’s outback, OZ at its Prominent Hill project and BHP at the Olympic Dam copper-uranium-gold mine and smelting operation…………………While Mr Argus was not talking about acquisitions, the SA outback is certainly an area known to the company.

Mr Argus said that, so far at least, BHP had maintained its sales volumes through a combination of its normal long-term contract and spot business. He did not talk about the squeeze on margins from the slump in commodity prices, or just how much of BHP’s long-term contract business has had to shift to accepting lower-priced spot business to maintain volumes.

Marathon rescue mission for OZ fails

economics

December 13, 2008

Good times wane for BHP
Herald Sun Felicity Williams 28 Nov 08
Two days after BHP dumped its $102 billion bid for Rio Tinto in the face of the global financial crisis, chief executive Marius Kloppers warned the climate made it difficult to predict customer demand.”The world has changed significantly in the past three months and,in our world of mining and resources, that rate of change has accelerated rapidly within the last month,”Mr Kloppers told the 800-odd shareholders attending the company’s annual meeting in Melbourne.He added: “These challenges are impacting every part of the economy and, as a major global supplier of many key commodities, we will not be immune from the effects.”…………………….The abandoned Rio bid was the subject of surprisingly few shareholder questions.Investors appeared more concerned about plans to mine the world’s largest uranium resource at Olympic Dam in South Australia.

economics

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economics

December 13, 2008

Dirty money, or filthy rich
WA Today * Tim Clarke * November 18, 2008 * Opponents to the immediate lifting of the ban on uranium mining in WA say the decision could leave the state with a deadly legacy……………………..Making good on one of his key election promises, Premier Colin Barnett and his cabinet yesterday said any future mining leases granted in the state would not incorporate the clause excluding uranium, as they had done since 2002.That opens the way for companies such as BHP Billiton to finally mine their vast deposits in WA, which one model estimates could generate up to $4 billion in export values.But according to Greens MLC Giz Watson that will mean “unacceptable risks” for West Australians.The Wilderness Society claims thousands of tonnes of radioactive tailings will end up buried somewhere in WA.“Uranium is not just another mineral to be exploited for cash,” Ms Watson said. Radioactive waste is produced at every stage of its mining and processing. This will create a deadly legacy for all West Australians for tens of thousands of years,” she said.“Which port does he (Barnett) intend the yellow cake to be shipped through – which community will become the new Esperance?”…………………..Peter Robertson of the Wilderness Council said bringing a “dirty and dangerous” industry into the state would create issues at every stage of production.“Uranium mining uses millions of litres of water, produces masses of radioactive tailings and opens up the question of transporting the material,” he said. “Uranium brings with it a whole new set of regulatory risks. And it will also undoubtedly bring more pressure on Australia and WA in regards to accepting nuclear waste.”

economics

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economics

December 13, 2008

BHP delays opening of world’s biggest pit
THE AUSTRALIAN Matt Chambers | November 01, 2008

BHP Billiton has pushed back the start date for its giant Olympic Dam copper and uranium expansion until at least 2015.

This was to include digging the world’s biggest open-pit mine.

In a long-awaited presentation, the mining giant was tight-lipped on development costs, which have been tipped by analysts to be $15 billion, and indicated it would not reveal them until the project was approved, in 2010 at the earliest.

BHP’s ambitious plans for the deposit will see it ramp up in three major stages over 10 or 11 years, with the planned, huge pit eventually eating into the existing underground mine and mill around 2025.
The end result would be a pit 7km long, 5km wide and 1km deep…………

………BHP said government approval was not expected until 2010, back from an earlier target of 2008…………

………..BHP is looking at a 10 to 12 year operation and said it would upgrade the feasibility study on the resource of about 35,000 tonnes of uranium oxide to determine the best way to develop it. BHP delays opening of world’s biggest pit | The Australian

economics

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economics

December 13, 2008

BHP Details Olympic Dam Growth, Questions Remain
 easybourse.com October 31st, 2008 By Alex Wilson Of DOW JONES NEWSWIRES “………………analysts said questions still remain about the timing and cost of the key growth project………
……..Olympic Dam is a key growth project for BHP and the update on its expansion plans has been keenly awaited, but didn’t include timing for the later stages of the expansion or an updated capital expenditure figure of the project.The company said it plans to issue its environmental impact statement for the massive project to the South Australian state government before the end of 2008 with approval to take between 12 months and 18 months……………….
……….Ord Minnett analyst Peter Arden, who was not on the site visit, said it was disappointing the presentation did not give a range for the cost of the project or a more definite timeline for its later stages.”It may not be that expensive or onerous, but it is just the uncertainty of it that is never ending and I don’t know why they can’t at least give some sort of ballpark figure,” he said………………

economics

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economics

December 13, 2008

BHP abandons plans for the new smelter at Olympic Dam
 THE AUSTRALIAN Gavin Lower | October 18, 2008 BHP Billiton has ruled out a new smelter for its proposed expansion of the Olympic Dam mine in South Australia.The announcement represents a blow to the South Australian Government’s hopes to maximise employment and value-added investment at the vast project.

economics

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economics

December 13, 2008

Radioactive alert on ethical investment
The Age Frances Howe September 2, 2008
A RECENT Corporate Watch Australia survey reveals that many so-called ethical investment funds invest in uranium mining.
Some fund managers justify investment in uranium with questionable arguments about nuclear power and climate change, but the primary reason for the shift is probably BHP Billiton’s entry into the uranium industry with its 2005 acquisition of WMC Resources, which owns the Olympic Dam uranium mine in South Australia.
Of 16 ethical investment funds studied, just two allow absolutely no investment in uranium or nuclear power.The rest either have no policy on the matter or allow limited investment in the nuclear industry………….
……………..rapid growth (in ethical investment) is accompanied by a crisis of definition and a dilution of its original principles. The concept “ethical investment” is vaguely defined: fund managers make their own rules, and their definitions of “ethical” vary………….
…….Some fund managers rule out investment in companies that get more than 5% of their revenue from uranium mining or nuclear power. This means that AMP’s ethical portfolio can still include shares in BHP Billiton and Rio Tinto — the world’s fifth and third largest uranium miners respectively………..
………………..There is no attempt to refute the large and growing body of scientific literature that demonstrates how the expansion of renewable energy sources, coupled with concerted energy-efficiency programs, can generate major reductions in greenhouse emissions without recourse to nuclear power.
Nor have most fund managers dealt with the ethical problems associated with uranium mining and nuclear power.
The uranium mining industry has a poor track record in its dealings with Aboriginal communities — failing to consult traditional owners, using divide-and-rule tactics, and ignoring sacred sites.In the words of Yvonne Margarula, Mirarr senior traditional owner in the Northern Territory: “Uranium mining has taken our country away from us and destroyed it. Mining and the millions of dollars in royalties have not improved our quality of life.”

economics

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economics

December 13, 2008

BHP Billiton shareholders call for moral stand on lucrative trade
Jan Mayman in Perth  October 1, 2007 The Guardian The world’s biggest mining company is facing a revolt from shareholders who want the group to stop excavating uranium.Activist plan to use the annual meeting of BHP Billiton, which last year made record-breaking profits of $13.4bn (£6.7bn), to force the company to take a “moral stand” and pull out of the highly profitable trade in uranium,
Led by John Poppins, a retired engineer whose family controls more than A$1m (£434,000) worth of stock in the company, the BHP Billiton Shareholders for Social Responsibilities group hope to enlist support from conservationists, churches and unions on the shareholder register.Mr Poppins has 60 of the 100 signatures he needs to get the issue on the agenda of the AGM in Adelaide next month, with more pledged.BHP Billiton’s outstanding commercial success and market pre-eminence carries an equally large moral obligation to provide leadership on issues of uranium production and nuclear proliferation,’ he said……….
………He is concerned that the Australian government has recently declared its support for uranium sales to Russia and India. And the notion that uranium was a clean fuel was wrong, he said. ‘Claims that uranium is ‘carbon-free’ completely ignore the substantial carbon costs of its mining, processing, power station construction, protection and disposal,’he said.Mr Poppins was an engineer in computing and aviation before retiring to take up ethical investment issues………………………..”

economics

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